Montenegro’s employment indicators continued to improve in early 2026, while the increase in average net earnings remained below the pace of consumer-price growth. Average net earnings reached €1,028 in January-May 2026, an increase of 2.2% compared with the same period of 2025. Average inflation during the first six months of the year was 3.3%, while the annual inflation rate reached 3.6% in June.
The periods covered by the wage and inflation figures do not fully coincide, meaning that a precise real-wage calculation cannot be derived directly from the two measures. The reported figures nevertheless show that recent price growth has exceeded the increase in average nominal earnings. The wage data come against a backdrop of stronger labour-market performance. Average employment rose 5%, while registered unemployment declined to a record low.
Despite the tighter labour market, the increase in nominal earnings during the first months of 2026 has not been sufficient to clearly exceed consumer-price growth. A more constrained supply of available workers would normally be expected to increase pressure for higher wages. Pension growth has also remained moderate. The average pension, including calculated differences, stood at €561.41 in May, which was 2.4% higher than a year earlier.
For households, the combination of stronger employment and continued price increases has produced different effects on income and purchasing power. More employment opportunities have been accompanied by consumer-price growth that has reduced part of the gains from higher nominal earnings. This environment coincides with rapid growth in household credit, while household deposits are also increasing. Montenegro’s next labour-market phase will depend on developments in productivity and wages, alongside employment and unemployment, with the aim of increasing real household income without adding further inflationary pressure.
